What is detailed in a balance sheet?

A balance sheet presents a snapshot of a company's financial position at a specific point in time, detailing its assets, liabilities, and equity. Assets are listed to show what the company owns, such as cash, inventory, and property. On the other side, liabilities represent what the company owes, including loans and accounts payable, while equity reflects the residual interest in the assets after deducting liabilities.

This format allows stakeholders, such as investors and creditors, to assess the company's financial stability and liquidity at that moment. Understanding the balance sheet is crucial for evaluating the health of a business and making informed decisions about investing or lending.

The other options describe different financial statements and concepts. A summary of cash flows is covered in the cash flow statement, which focuses on the inflow and outflow of cash. A report on income and expenses represents the income statement, illustrating profitability over a period. A breakdown of shareholder dividends would be included in the statement of changes in equity or the notes to the financial statements. Each of these serves a distinct purpose and provides different insights, but none offer the comprehensive view of the company's financial position that a balance sheet does.